Rental Leases - Urgent help needed

[Peta]

Dear Brains Trust,

If any of you out there have added in various conditions to your tenant leases please let me know. I am currently in the process of signing up with a managing agent for my first IP in Bathurst and need to know what sorts of 'special conditions' are common and accepted.

Any help much appreciated and thanks in advance!

 

[Francesco]

Hi Peta

Some areas that you may consider special conditions are:

1. pets (tenants are likely to let outside pets into your house if you let them keep in the backyard. Pets will likely defaecate indiscriminately and dig up your plants)
2. smoking (they will likely say that they are non smokers but smoke all the same, burning your nylon carpets). Some will smoke outside.
3. keeping front yard clear of things other than their cars. Some may repair their cars in front and leave their in-progress work to spoil the streetscape for weeks.
4. expense cost for consumption of water
5. children. I personally have not made this a big issue. But be prepared to repair for the pin holes, tape glue marks, grafitti and wilful damage to walls and doors.
6. special appliances such as stainless steel pride and joy. Leave some specific instructions on how to clean and maintain.

Cheers

F

 

[Peta]

Thanks will consider those.

The tenants I am looking to secure are uni students and the issue of pets and smoking have been covered.

The following are some of the other conditions I was thinking of...

As I am suppling the residence furnished, I am also asking that furniture remains in its designated place and is not altered or changed in anyway.

As I am also paying for utilities (in return for extra rent), have asked that no extra appliances (other than those I have supplied - which is everything) be added to the premises (eg bar fridges, dishwashers, dryers, fans and heaters etc) -all are included anyway except dryer and dishwasher.

I was also reading a book tailored to suit NSW rental law that suggested tenants pay the first $50 of any maintenance call out in order to weed out the minor calls to change light bulbs etc. I have taken this on board, but have made it $30 not $50!

As the property is in Bathurst, I have also included a condition that the property may need to be vacated for the Bathurst 1000 race week in return for one weeks free board - Im sure they can stay with a friend for a week and I have heard that this is quite a common occurance in the area for this event.

No partners to move into the premises

Double lock-up garage is available for their perusal for an extra fee of $7.50 per garage/week

Do these sound fair?

 

[Xenia]

If you are paying for utilities. I strongly suggest you put a cap on the maxiimum amount via a clause in the lease.

Be careful about breaching the "quiet enjoyment of the property" legislation. Some of the clauses you are suggesting will not hold up to a tribunal hearing and the tenants will be allowed to breach them without penalty.

Do you have a pm that can advise you?

 

[twobobsworth]

As I am also paying for utilities (in return for extra rent), have asked that no extra appliances (other than those I have supplied - which is everything) be added to the premises (eg bar fridges, dishwashers, dryers, fans and heaters etc) -all are included anyway except dryer and dishwasher.

I was also reading a book tailored to suit NSW rental law that suggested tenants pay the first $50 of any maintenance call out in order to weed out the minor calls to change light bulbs etc. I have taken this on board, but have made it $30 not $50!




Surely as students they may have computers, stereo's or TV's they will bring.

Can you charge a tennant for something that is your responsibility?

 

[marg4000]

How can you expect your tenants to move out for a week for the Bathurst 1000 race? They would have to pack and remove all their posessions from the house which would be an enormous inconvenience, particularly if the race is during their studies and not in holidays.

Some of the clauses would never hold up at tribunal level.

Once tenants rent a property it is their property. Moving furniture around to suit, having friends over etc are just part and parcel of normal life.

I also doubt you can make tenants pay part of maintenance calls, that is part of your responsibility as a landlord.

Your PM will be able to advise you of the legal situation on these issues.
Marg

 

[GoAnna!]

Why would they agree to move out for one week's rent? Perhaps I am wrong but I would have thought you would have trouble getting that one past - the tenants or the tribunal.....

It would seem that your conditions do not in any way acknowledge that it is their home (even if it is your house)

 

[MickInvestor]

No offence but if I read those clauses in a lease I'd run for the hills!

 

[Peta]

Hi all,

Thanks for your responses.

Xenia:
I strongly suggest you put a cap on the maxiimum amount via a clause in the lease. I didnt realise I could do this? Have you had experience with this?

Be careful about breaching the "quiet enjoyment of the property" legislation. Some of the clauses you are suggesting will not hold up to a tribunal hearing and the tenants will be allowed to breach them without penalty. Which conditions affect the 'quiet enjoyment'....moving out?

I do have a PM but I must say Im not 100% impressed. They are the only agent in town that rent by the room so Im kinda stuck as that is the set-up I am using

GoAnna and Marg4000
I only included this one as I heard it happens a fair bit in the town for this weekend. It would be in return for free board and I have provided lockable storage areas. When I was at uni, I always had to pack up my stuff every holiday as the room was used for external students. As I have provided EVERYTHING in the house (practically self-contained) all they need to pack is their clothes and computers if they have them. I did ask my PM weeks ago but she didnt give me the impression it would be a problem.

Marg4000
Once tenants rent a property it is their property. Moving furniture around to suit, having friends over etc are just part and parcel of normal life.As mentioned above, I have provided furniture for all rooms (the bedrooms are the ones in question), I have arranged it so that single beds are in the smaller rooms etc etc so they still have room to move. Furniture in common rooms and the entertainment areas outside could be moved but I dont see why it needs to be as I am providing so much for each room that there will be enough for all tenants if they are all there together.

I also doubt you can make tenants pay part of maintenance calls, that is part of your responsibility as a landlord.As I said, I got this from a book that looks at NSW law and what is and isnt accepted. I wasnt going to do this until the book suggested it as a means to avoid paying for maintenance call outs just to change light bulbs and other minor things that can be done without specialist tradespeople and occur due to lazy tenants (or so the book says).

twobobsworth
Surely as students they may have computers, stereo's or TV's they will bring.Im sure they will have computers and that is fine, stereos too. There should be no need for their tv's as there are 3 living areas and I am providing 3 tv's and dvd's/vcr's to each.

MickInvestor
Haha! I havnt offically put these in yet, tossing ideas around and as this is my FIRST IP I am walking around blind folded lol! Thats why I am looking to the experts out there that have given me so much help already during this journey.

 

[skater]

Gees, Peta they are a lot of conditions. If I was a student, looking for rental accommodation, I think I would look elsewhere.

Tenants WILL have extra appliances. If female they will have hair dryers, straighteners, maybe epilators. Then there are mobile phone chargers, computers, sterios, TV's, DVD's etc. And what right do you have to say they can't bring their own TV's as there is one in the living area? Do they not have a right to have one in their own rooms?

Students will move furniture around. Deal with it.

They will have friends sleep over sometimes.

To make them move out for a week while you get a premium rental is WRONG on so many levels. Either it is student accommodation, or holiday accommodation. You can't have it both ways.

As for charging for a call-out, how on earth are you going to do this? If the property is let per room, are you going to divide it by the amount of tenants you have?

 

[lizzie]

totally agree with skater on all counts (thanks for not making me have to type it).

so many of your conditions are morally and ethically wrong - whether they do stand up in law or not. this house is their "home" whether someone else owns it or not. how would you feel if someone else dictated to you every aspect how you lived within your home, right down to the placement of furniture.

as for the callout fee - the choice is yours, as landlord, as to whether a tradesperson is called out or not. this is on the agreement between you and the pm as to what level you want to be advised of problems and what you are prepared to pay for. it is within your rights, to ask the pm, to tell them to change their own damn lightbulb.

 

[pulse]

Peta, I agree with the others, it is not a hotel, it is their home. The standard resi lease is legislated, extra clauses cannot be enforced, especially if they are unreasonable.

Put yourself in their position, would you like to be told to move out for a week, would you like to be told where to put your furniture, would you like to pay extra to use your garage. Would you like to be told that you must sleep in a single bed.

Maintenancce is your responsibility, if there is a leaking tap the tenant doen't pay, you do.

Good tenants need to be trusted, and will look after the place, and leave it as they found it.

Please listen to the good advice on this forum and don't give the rest of us landlords a bad name.

Cheers
Pulse

 

[Dazz]

Geez pulse, poor ol' peta is just asking the forum what they think. As she said, she hasn't implimented anything - just tossing around ideas and receiving feedback before choosing to act on her very first IP.

Strong feedback is OK up to a point, but tarring her with a "you're a bad Landlord" brush is a bit over the top. It's her first go around and she's asking some legit questions.

Peta, it appears that you are already questioning the underlying premise of your asset - ipso - they get to use and you get to pay if anything goes wrong....and something isn't quite ringing true. Obviously you've done your figures and something isn't quite adding up, and now you are examining ways of increasing the cash in your pocket. Nothing wrong with that, as long as you don't step over the legislated mark.

It looks like you need to read up some more on the RTA in your state to find out exactly what that mark is. If you have this keen eye now at the start, you'll probably be extremely disappointed with what you read in the RTA. As others have mentioned already, most of the rights belong in the tenant column, and most of the obligations and responsibilities fall into your column.

I'm very impressed with your overall approach. It took me about 3 or 4 years to get to the point where you are already - questioning and probing and figuring out some things don't quite sit properly.

At the end of the day, if it all gets way too hard, and feel you don't have parity with the legislated "rights" that your tenant has.....then you'll know you're playing the wrong game.

Don't make a big song and dance about it, or huffing and puffing about your rights as a Landlord. Just start playing a different game where your rights as Owner are more recognised.

Good luck with being a Landlord....it can be fun.

 

[steveadl]

Probably doesn't really need to be said anymore, but I agree with what others have said.

Moving all of my stuff out for a week (and you'd be surprised how much people can fit into a bedroom), not being able to move an armchair in the loungeroom, not being able to watch my own TV when all the other drongo's in the house are watching Big Brother etc. and I want to watch a crappy '80's movie that no one else likes (but I love), and living in fear of getting a leaking tap fixed (which will do your house more harm in the long run for the $ it saves you) - would not be the type of house I would want to live in. So unless the student rental market in Bathurst is extremely tight and they have no other choice, I don't think you'll be anyone's favourite landlord.

So in answer to the question "do these sound fair" - no. Can you do it - perhaps yes. Does that mean it should be done - ???.

 

[Glucose]

As I am also paying for utilities (in return for extra rent), have asked that no extra appliances (other than those I have supplied - which is everything) be added to the premises (eg bar fridges, dishwashers, dryers, fans and heaters etc) -all are included anyway except dryer and dishwasher.

I think this is very fair. You are paying for the electricity , and believe me they will take advantage. The last thing you want to provide is a dryer. They are one of the hungriest of all electrical appliances. I have provided airconditioners in some rooms and, after finding airconditioners left on while the student was out all day, and running up HUGE electrical bills, had to introduce a rule that one warning will be given not to do this and after that anyone who's room airconditioner was found to be on whilst they were out, will be immediately evicted.
They WILL take advantage. Have you put in a coin-operated washing machine?
[
No partners to move into the premises

This is also fair enough. You have one student paying for a room and part of the cost you have factored in is the wear & tear, etc. the cost of hot water for one person showering and SO ON, so, while the occasional overnight stay by a boyfriend/girlfriend is okay, they should not be allowed to move in - the operative word here being occasional.

Do these sound fair?

Yes.All sounds fair to me - these sorts of properties are a LOT of work.

 

[Pablo]

I was also reading a book tailored to suit NSW rental law that suggested tenants pay the first $50 of any maintenance call out in order to weed out the minor calls to change light bulbs etc. I have taken this on board, but have made it $30 not $50!

Hi Peta,

This isn't a bad idea theoretically but in practise it could cost you allot of money.

Just imagine that there is a small maintenance issue that is not effecting the tenants but has the potential to cause further damage such as a leak coming from the air conditioner, normally the tenants should notify you but with this clause they will not as they won't want to pay the fee, this small leak which may have cost you $100 to fix may end up costing you thousands by the time you notice the damage that has been done.

Cheers,
Pablo.